Councils bypassed for large housing developments

Plans to streamline housing development in the UK are set to take a significant step forward as reports suggest that local councils will have their authority diminished in favour of central government’s direct intervention. Housing and Communities Secretary Steve Reed is expected to announce this pivotal change, which will see planning applications for developments consisting of more than 150 homes bypass local planning committees and be referred directly to the Secretary of State.

Will Thomas, a partner in planning at Browne Jacobson, expressed his perspective on this matter. He stated that “Developers will welcome any move to unlock housebuilding, but any intervention from central government must ensure it doesn’t merely move decision-making bottlenecks between public authorities or risk undermining an already fragile public confidence in development.” He pointed out that while this bypassing of local authorities may expedite some processes, it introduces the Planning Inspectorate into the equation, which may soon be inundated with applications like it has never dealt with before.

He further raised concerns about the administrative shift, emphasising that “Moving this administrative layer from local to central government therefore raises questions about whether sufficient capacity exists within the civil service – and whether a better solution would be to resource local authority planning departments more effectively.” The implications of these changes could mean that hurried decisions risk losing the nuance necessary for quality development. “Forcing through large-scale housing projects too rapidly could increase tensions between communities and government,” he cautioned.

Moreover, Thomas advocated for a balancing act between the ambition for increased housebuilding and the urgent need to upgrade essential infrastructure including schools, hospitals, and transport systems. He also called for continued collaboration between developers and local councils to engage communities adequately and to address potential disruptions caused by new housing developments. He noted, “Creating a more positive picture of development could also help to tackle another key challenge that planning reform alone won’t address, which is the acute skills gaps in planning and construction.”

The industry is facing increasing concerns over the viability of new housing projects, attributed to rising costs of raw materials and stricter regulations that have emerged since the pandemic. Thomas articulated this predicament by stating, “the costs of raw materials and borrowing have soared...while regulations and new taxes like the Building Safety Levy continue to squeeze margins.”

As the government pursues housing as a means to stimulate economic growth, it’s apparent that successful delivery will depend on the alignment of broader economic strategies to address cheaper energy access, inflation reduction, and bridging skills gaps.

Browne Jacobson is taking proactive steps to foster public-private partnerships for managing investments in public infrastructure. Their collaboration with the CBI and the think tank New Local has led to the report titled 'Constructing Consensus: The case for community-powered development and regeneration.' This initiative advocates for the creation of citizen assemblies to ensure that new developments truly resonate with community priorities, addressing vital issues like inadequate GP access, school capacity, and transport deficiencies.